Introduction of Upcoming Cryptocurrencies on the Financial Industry

        The cryptocurrencies are referred to as the digital cash. The cryptocurrencies is an online payment system and digital currency that involves the encryption techniques for the generation and regulation of currency units along. It also includes the funds' transfer verification. Cryptocurrencies operate independently without connecting with the central bank. The words blockchain and Bitcoin can confuse as it might be used to refer any of the three parts of the concept that includes the client and protocol that affect the transaction, the blockchain technology and the actual cryptocurrencies that is the digital money. Moreover, these terminologies can also be referred to the overall concept of cryptocurrencies. It is similar to calling the Pay Pal as the Internet Pay Pal which is used to run the operations of Pay Pal that is the Pay Pal currency transfer.

        These terms are also used interchangeably in the Cryptocurrencies industry because in the technology stack the sector is still in the shaping process to become an established layer. The Cryptocurrencies also referred to as the creation of reward as a result of the computation processing work which is also known as mining. In mining, the computing power of the users is offered for the verification and record keeping of the payments in the public ledger. In exchange for newly created Bitcoin and transaction fees, the companies or individuals are involved in the mining. However, other than mining, the Cryptocurrencies can also be acquired through the exchange of products, services and fiat money like any other currency. Moreover, the Cryptocurrencies can receive and sent electronically but with an optional transaction fee. The transactional fee paid by using the wallet software on the web application, personal computer or mobile device (Dhs.gov 2018).

Cryptocurrencies in the future economy

        The level of volatility is very high for the most popular Cryptocurrencies. The cost of Cryptocurrencies is pegged against the fiat currencies and precious metals. These projects will be effective and promising only if the state institutions accept it and they are implemented with the legal boundaries. Likewise, when the Cryptocurrencies fulfill these criteria, it will be more successful and effective.

        Furthermore, the CoinLoan will use the Cryptocurrencies as the collateral and also allow the working with the Cryptocurrencies similar to fiat funds.  The platforms like CoinLoan use the Cryptocurrencies to enables the financial holders to acquire and save the virtual currency. Moreover, with the development of these blockchain technologies, it is expected that the non-competitive financial institutes offering higher rates of interest will be forced out gradually (O'SULLIVAN 2018).

        It is expected with the trend of blockchain technology, and Cryptocurrencies will be fully developed positively within the next 5-10 years.  Following this, more countries are accepted to legalize these digital currencies as well as adopt the latest blockchain technologies in the accounting systems, financial registers, real estate, medical, education, and other routine processes. In this way, more transparent, safe and fully authorized infrastructure will be established to make life more comfortable and convenient. Following the potential of Cryptocurrencies, more companies and start-ups prefer Initial Token Offering/ Initial Coin Offering (ITO, ICO) for raising funds instead of conventional ways of initial public offerings (IPO).  In the comparison of IPO, ICO is considered the more transparent, modern and fast method of transferring the financial resources (Darlington 2014).

        During the past year, an increase of 13% has been witnessed in the total capitalization of Cryptocurrencies market and the growth is continued. Following, the continuous growth of Cryptocurrencies the interest is also increasing equally and therefore; they are intended to make the considerable investment in Cryptocurrencies. In the coming years, the secured assets of Cryptocurrencies are going to become an integral part of the ecosystem of the crypto world similar to the real estate collaterals. Moreover, the whole system of Cryptocurrencies is very convenient, quick and profitable for the investors. Using the platform of CoinLoan the holders of Cryptocurrencies can pursue everyday needs while living on the spot. In this way, they don't have to sell these profitable investment assets even if they need the money urgently.

    Moreover, the Cryptocurrencies can also be borrowed as the secure assets for up to 5years. However, according to the trend, the cost of Cryptocurrencies will be increased during this time. In this way, the loss of financial resources will be compensated that is secured on the Cryptocurrencies. Moreover, the sale of crypto assets also ensures higher profits for investors.

    Following the growth potential of digital currencies, the state's interest in the blockchain technologies has increased considerably. In their regard, a real estate’s register has been replaced by the blockchain in many countries. All the transaction of blockchain is fully automated that makes it easier to evaluate these assets immediately (Ølnes and Jansen 2017).

Cryptocurrencies impacts on financial industry

        The Bitcoin has the revolutionary potential. According to the vision of OG's Cryptocurrencies are accepted to interest to financial institutes instead of modern replacement. In this article, the author has discussed that the distributed ledger system has the potential to handle the three main banking functions including clearing of transfer, storage of physical money and loaning whereas, the banks can play a more significant role of managing the financial industry based on Cryptocurrencies. The Bitcoin cannot handle the very financial transaction around the world and included it in the blockchain. Therefore, a more efficient secondary level is required for the payment system. Hence, likewise, the finalized time for the transaction time for Bitcoin will be imperial for the large and medium value purchases. Therefore, this problem can be solved with eth Bitcoin backed banks. They will play the same role the banks played before currency nationalization. However, banks can be various police and varying interest rates. Some of them can be 100% Bitcoin back, and the others can make fractional reserve (Davidson, Filippi and Potts 2018).

        Monetary control is the highest value that is brought to the financial industry by the blockchain. With the technological advancements, the dependency on the banks will be reduced to keep your money save. With the blockchain, it is nearly impossible to hack or manipulate as it stored the cash in the immutable ledger. Hence, while using the blockchain technology, the investor has to focus on the open-source code of the coin instead of any corruptible institute. Moreover, Cryptocurrencies ensures that the no can free the funds of the investor or dictate them about how to use the money. (Guo and Liang 2016).  The Cryptocurrencies give full control to the investors for their funds, wallets and private key and this control is considered as the rule number one in the Cryptocurrencies.

        Moreover, while using the blockchain, no intermediary is required for any transaction. Following, its positive impact the upcoming Cryptocurrencies are also committed to using this feature. Moreover, the big plays of the industry including Litecoin and Bitcoin are also conducting transactions without the middleman.

        Lack of fess and almost immediate time of the transaction of Nano, it has achieved some popularity. Instead of using the typical blockchain Nano is using the directed acyclic graph algorithm. Moreover, the increasing numbers of people also increased the efficiency of the network. In peer-to-peer payments, the Cryptocurrencies might have a favorable and positive future. Request Network is another project that is expanding is operation beyond the peer-to-peer payments by using the blockchain interface like Paypal. These platforms enable the users to acquire the money transfer services without the third-party intermediaries. These platforms have created a comprehensive mind map including all the possible ways of changing the financial industry. The team of these platforms is intended to fix payments, crowdfunding, and point-of-sale.

        Most considerably the Cryptocurrencies are intended to provide banking services without using the banks. In this regard, the Cryptocurrencies will deliver these services up to 2 billion people on the global level (Iansiti and Lakhani 2017). The upcoming Cryptocurrencies are intended to provide banking services to the unbanked individual in a more affordable manner. In this regard, Steller enables the financial institutes to offer low-cost accounts along with the most favorable rates of interest. In this way, even in the developing countries, the business owners will be able to get an easy loan. It will also stimulate the global financial industry. However, the exchanging Cryptocurrencies are having unwanted effects on the unbanked nations' financial sectors. For instance, the initiative of improving and transforming the economic landscape of Uganda has been announced by Finance. In the regard, Finance is intended to use blockchain for providing youth employment opportunities in Uganda (Swan 2015).

References  of Upcoming Cryptocurrencies on the Financial Industry

Darlington, James K. 2014. "The future of Bitcoin: mapping the global adoption of world’s largest cryptocurrency through benefit analysis." University of Tennessee Honors Thesis Projects.

Davidson, Sinclair, Primavera De Filippi, and Jason Potts. 2018. "Blockchains and the economic institutions of capitalism." Journal of Institutional Economics 1-20.

Dhs.gov. 2018. "Blockchain and Suitability for Government." https://www.sites/default/files/publications/2018_AEP_Blockchain_and_Suitability_for_Government_Applications.pdf.

Guo, Ye, and Chen Liang. 2016. "Blockchain application and outlook in the banking industry." Financial Innovation 2 (1): 24.

Iansiti, Marco, and Karim R. Lakhani. 2017. "The truth about blockchain." Harvard Business Review 95 (1): 118-127.

Ølnes, Svein, and Arild Jansen. 2017. "Blockchain Technology as s Support Infrastructure in e-Government." In International Conference on Electronic Government 215-227.

O'SULLIVAN, ANDREA. 2018. How do cryptocurrencies affect monetary policy? https://coincenter.org/entry/how-do-cryptocurrencies-affect-monetary-policy.

Swan, Melanie. 2015. Blockchain: Blueprint for a new economy. O'Reilly Media, Inc.